Ulaanbaatar
OT Underground Mine Development financial agreement signed
PoliticsUlaanbaatar /MONTSAME/ Government of Mongolia, Rio Tinto and Turquoise Hill Resources signed Tuesday the financial agreement of 4.48 billion USD for the Underground Mine Development of Oyu Tolgoi copper mine.
The capital is being provided by a syndicate of banks and export credit agencies in the form of loans that have terms of 12 to 15 years. With the financing secured, the underground mine development which is the construction of a 200 km tunnel reaching the underground copper pit is to start within the first half of 2016. The underground mine is expected to be commission after 5-7 years.
Once commissioned, Oyu Tolgoi mine is estimated to cover one third of Mongolia’s GDP, by accumulating 1.2 billion USD to the State Budget each year, said the Chairman of Board of Oyu Tolgoi LLC G.Batsukh.
The underground mine will also create 300 workplaces, which will be occupied by some of the former miners of Oyu Tolgoi.
Although the metal prices have declined on the global market, 64.6 percent increase in concentrate production in the second quarter of 2015 has given a great impetus to commencement of underground development.
